In today’s episode of The Market Report, analyst and writer Marcel Pechman discusses why cryptocurrency prices are falling after Bitcoin (BTC) failed to break above $29,000, plus whether or not Jerome Powell is lying about keeping interest rates above 5% and finally, what did Warren Buffett mean by the “incredible period” coming to an end. The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.
The first piece of news explains why Bitcoin has been trading in a tight range near $28,000. Guilty? The clash between markets and policy makers, as US Federal Reserve Chairman Jerome Powell publicly stated that interest rates are unlikely to fall this year. Meanwhile, risk asset markets have firmly priced in lower rates in the coming months.
Pechman explains why the Federal Reserve raised interest rates above 5% and the apparent disconnect between the 3.4% unemployment rate and the 42 million Americans who are SNAP (food stamp) recipients. In addition, the analyst dives into the USD 31.5 trillion of public debt and the debate to raise this limit even more.
But more importantly, Pechman explains that Bitcoin could revisit levels below $20,000 if the government doesn’t bluff by keeping interest rates above 5% through 2023. As for the memecoin invasion, Pechman believes that the PEPE rally (and subsequent correction) is simply a sector rotation, not an altcoin season far from it.. In addition, the analyst explains why the futures markets are necessary to create a more efficient and balanced market pricing for PEPE.
Moving on to the next item on the agenda: Pechman discusses Warren Buffett’s bearish bet after increasing the cash position of his investment holding company Berkshire Hathaway to its highest level in 18 months. A looming recession or just weaker earnings over the next couple of quarters? Check today’s Market Report to find out.
In the last part of the Market Report, Pechman explains why Bitcoin network fees spiked above $10, causing Binance to stop withdrawals. Are ordinals and inscriptions an attack on Bitcoin? What does it mean for the Lightning Network and the Bitcoin use case in general? Do not miss it! The program is exclusively available on the Cointelegraph Markets & Research YouTube channel.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.